Use the following graph for a monopolistically competitive firm to answer the next question.
Point b indicates
A. the price-output combination that yields maximum profits.
B. the lowest possible cost of the firm's product.
C. a situation where the firm is earning economic profits.
D. a point that cannot be the long-run equilibrium point.
Answer: A
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The number of times per year that a dollar is spent on final goods and services defines
A) the income velocity of money. B) the money supply. C) the price index. D) GDP.
In answer to the question "How did Britain affect American economic growth?" Hughes and Cain (2011) reach what conclusion?
(a) The colonies were launched with English institutions, and they were allowed to modify them to meet local needs. In exchange for their investment in the colonies, the British expected the American colonies to produce and grow rapidly. (b) British policies were adverse to the colonies because they interfered with efforts to recruit a labor force and maintain employment at something close to full employment. (c) British policies prevented the colonies from going through an Industrial Revolution, as was occurring in England. (d) British policies significantly held down income growth in the colonies because they aimed at increasing the proportion of "primary" output at the expense of commercial and manufacturing output.
In the United States, labor earnings are about what percent of total income?
a. 75 percent b. 70 percent c. 67 percent d. 50 percent
The marginal productivity of capital increases with greater capital inflows into the borrowing country.
Answer the following statement true (T) or false (F)